RAJ PAL CHAUHAN Vs. ANANT RAM NEGI

JUDGEMENT

(1.) This Regular Second Appeal has been filed by the defendant -appellant against the judgments and decrees of the Courts below, whereby the suit filed by the plaintiff was decreed by the trial Court and the appeal filed by the defendant was dismissed by the Additional District Judge. 2.Anant Ram Negi (plaintiff) had filed a suit for recovery of Rs.1,54,000/ -as principal amount and Rs.54,000/ - as interest @ 18% per annum), against Raj Pal, defendant on the basis of a receipt dated 5.11.1993 showing that Raj Pal, defendant had taken a sum of Rupees One Lac as loan from Anant Ram Negi, plaintiff for household needs, it was alleged that the defendant had issued a cheque for Rupees One Lac in favour of the plaintiff for repayment of the said amount but the same was dishonoured. It was further alleged that the defendant having failed to repay the loan amount alongwith interest, the plaintiff fifed the suit for recovery of Rs.1,54,000/ - which included principal amount and interest @ 18% per annum. In the written statement, the defendant admitted having issued a cheque of Rupees One Lac in favour of the plaintiff, but it was alleged that it was on account of bet that he had issued the said cheque. 3.After hearing both the sides and perusing the record, it was found by the trial Court that the plaintiff had paid a sum of Rupees One Lac to the defendant and in lieu thereof, the defendant had issued the said cheque for Rupees One Lac and that the said cheque was dishonoured and that the defendant had failed to repay the loan amount and as such, the plaintiff was entitled to the recovery of Rupees One Lac alongwith interest @ 18% per annum for the date of loan i.e. 5.11.1993 till the realization of the entire amount. It was further held that the story regarding bet was not proved on the record. The learned Additional District judge also upheld the aforesaid judgment and decree of the trial Court by dismissing the appeal filed by the defendant.

(2.) When the present appeal came up for hearing before me on 23.3.2005, it was submitted before me by the learned counsel for the defendant -appellant that the interest awarded by the Courts below was on the higher side especially when there was no contractual rate of interest and in case future/further interest could not be more than 6% as it was not a commercial transaction. Thereupon, the notice was issued to the plaintiff -respondent and records were also requisitioned. 5.1 have heard the learned counsel for the parties and have gone through the record carefully. After hearing the learned counsel and perusing the record, in my opinion, the following substantial questions of law arise for determination in this appeal:

(3.) Whether the Courts below were justified in awarding 18% per annum interest to the plaintiff on the loan amount of Rupees One Lac, in the absence of any contractual rate of interest?